HRA Exemption Calculator (India)
Computes the tax-exempt portion of House Rent Allowance under Section 10(13A). Note: HRA exemption is available only under the OLD tax regime — the new regime doesn't allow it.
Inputs
Exempt = the smallest of these three:
The three statutory tests
Your HRA exemption equals the least of these three amounts:
- Actual HRA received from your employer
- 50% of (Basic + DA) if you live in a metro (Mumbai, Delhi, Kolkata, Chennai); 40% otherwise
- Rent paid − 10% of (Basic + DA)
Whichever of these three is smallest is what gets exempt. The remainder of your HRA is added to taxable salary.
Documents you need
- Rent receipts (monthly or quarterly)
- Rent agreement (employers usually require it for rents above ₹1 lakh/year)
- Landlord's PAN — mandatory if annual rent exceeds ₹1,00,000 (₹8,333/month)
Common mistakes
- Claiming HRA without actually paying rent — you must produce receipts if scrutinised
- Paying rent to family members — allowed, but bank-traceable transactions only; cash payments to spouse can trigger scrutiny
- Using new tax regime — HRA exemption is not available; switch to old regime if your HRA exemption is significant
Frequently asked questions
Can I claim HRA if I'm paying rent to my parents?▾
Yes, but only if (a) you actually transfer rent to their bank account, (b) they declare it as rental income on their tax return, and (c) you have a rent agreement and receipts. The IT Department has scrutinised this aggressively in recent years.
What if my company doesn't include HRA in my salary?▾
Then you can't claim Sec 10(13A). However, you may claim Sec 80GG instead (max ₹5,000/month or 25% of total income, whichever is less). 80GG also requires you to not own a residential property in the city where you live and work.
Is HRA exemption available in the new tax regime?▾
No. The new regime (default since FY 2023-24) doesn't allow HRA, 80C, 80D, or most other deductions. If your HRA exemption is ₹2 L+ annually, the old regime might still save you more even after losing the higher slab thresholds.
Which cities count as 'metro' for HRA?▾
For HRA purposes, only Mumbai, Delhi, Kolkata, and Chennai are metros (50% rule). Bangalore, Hyderabad, Pune, Ahmedabad and others are non-metro (40% rule), even though they're called 'metros' colloquially.